dissaving

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Negative Saving

A situation in which the persons in an economy save, in the aggregate, less than they spend. For example, suppose a small economy exists in which the people spend in total $1 million, but only manage to save $800,000. This economy has negative savings. By its nature, negative saving requires an economy (though not necessarily the government) to take on debt.

dissaving

the excess of current CONSUMPTION expenditure over current DISPOSABLE INCOME, the difference being met by HOUSEHOLDS drawing on their past SAVING. See SAVINGS SCHEDULE.